Wynnchurch Capital will reap an about 4x return on its announced sale of Wolverine Advanced Materials, an autoparts maker. Wynnchurch announced the sale of Dearborn, Michigan-based Wolverine to ITT Corp for about $300 million. Wynnchurch acquired Wolverine in December 2010 through a corporate carve-out from EP Management Corporation.
Wynnchurch Capital, a leading middle market private equity firm announced the sale of Wolverine Advanced Materials (“Wolverine”) to ITT Corporation (NYSE: ITT) for approximately $300 million. Wynnchurch generated a return of approximately 4.0x multiple of invested capital on its investment in Wolverine.
Headquartered in Dearborn, Michigan, Wolverine is a global leader in developing and manufacturing proprietary products for automotive braking systems and highly engineered sealing solutions for harsh operating environments across a range of industries. Over the past 80 years, Wolverine has built a reputation for quality, innovation and thought leadership in material sciences. Through customer-focused innovation, Wolverine developed the largest portfolio of specialty elastomer material constructions in its end markets. Wolverine serves a diverse group of customers, including many of the most well-known, blue chip OEMs across North America, Europe and Asia.
Terry Theodore, Partner at Wynnchurch, stated: “Wolverine represented an opportunity to reinvigorate a company with great DNA, differentiated products and leading market share. By recruiting fresh leadership and working with the management team to drive operational improvement, bolster the sales and go-to-market strategy, invest in engineering and product development and execute a strategic add-on acquisition, Wynnchurch and the management team were able to significantly grow Wolverine’s earnings and accelerate its topline growth.”
Brian Crumbaugh, Managing Director at Wynnchurch, added: “Wolverine is a great business and we are proud of the growth and accomplishments that the management team, in close collaboration with Wynnchurch, were able to achieve during our ownership period.”
Wynnchurch acquired Wolverine in December 2010 through a corporate carve-out from EP Management Corporation.
UBS Investment Bank served as financial advisor and Foley & Lardner served as legal advisor to Wynnchurch.
About Wynnchurch Capital:
Wynnchurch Capital, headquartered in the Chicago suburb of Rosemont, Illinois with offices in Michigan and Toronto, and affiliates in New York, Los Angeles, and Montreal, Canada, was founded in 1999 and is a leading middle market private equity investment firm. Wynnchurch’s strategy is to partner with middle market companies in the United States and Canada that possess the potential for substantial growth and profit improvement. Wynnchurch Capital manages a number of private equity funds with $2.3 billion under capital management and specializes in management buyouts, recapitalizations, corporate carve-outs, restructurings and growth capital. For more information, please visit www.wynnchurch.com.